Stand Up India Scheme

Last Updated : July 11, 2025, 5:16 p.m.

The Stand Up India Scheme, launched by the Government of India on April 5, 2016, aims to promote entrepreneurship among women, Scheduled Castes (SC), Scheduled Tribes (ST), and other marginalized communities by providing access to finance and support for setting up greenfield enterprises. This initiative is a significant step toward fostering inclusive economic growth and empowering underrepresented groups to contribute to India’s entrepreneurial ecosystem.

Key Objectives of the Stand Up India Scheme

• Promote Entrepreneurship : Encourage individuals from SC, ST, and women entrepreneurs to establish businesses in manufacturing, services, or trading sectors.
• Financial Inclusion : Provide access to credit for setting up new enterprises, addressing the financial barriers faced by marginalized groups.
• Job Creation : Support the creation of employment opportunities through new enterprises, contributing to economic development.
• Empower Marginalized Communities : Facilitate economic empowerment of SC/ST communities and women by enabling them to become job creators rather than job seekers.

Eligibility Criteria for the Stand Up India Scheme

To avail the benefits of the Stand Up India Scheme, applicants must meet the following criteria:

1. Applicant Profile :
   • Must be an individual from the SC/ST category or a woman entrepreneur.
   • Must be above 18 years of age.
2. Enterprise Type :
   • The enterprise must be a greenfield project (a new venture) in the manufacturing, services, or trading sector.
   • In the case of non-individual enterprises, at least 51% of the shareholding and controlling stake should be held by an SC/ST or woman entrepreneur.
3. Business Requirements :
   • The enterprise should be a first-time venture for the applicant.
   • The business should not be in default with any bank or financial institution.
4. Loan Purpose :
   • The loan must be used for setting up a new enterprise, not for expanding or modifying an existing one.

Benefits of the Stand Up India Scheme

• Financial Access : Provides affordable credit to groups traditionally excluded from mainstream financing.
• Empowerment : Encourages women and SC/ST individuals to become entrepreneurs, fostering self-reliance.
• Support Ecosystem : Offers end-to-end support, from ideation to execution, through partnerships with SIDBI, NABARD, and other agencies.
• Credit Guarantee : Reduces the risk for banks, making it easier for applicants to secure loans without collateral.
• Economic Impact : Contributes to job creation and economic growth by supporting new businesses.

Tax Benefits/Incentives in Stand Up India

• An 80% rebate will be given to the applicants after they fill out the patent application form. Only startups can fill up this form, so they get more benefits than other companies.
• The scheme also includes Credit Guarantee Fund. Relaxation in Income Tax for at least the first three years will be enjoyed by entrepreneurs.
• The entrepreneurs will enjoy complete relaxation for the Capital Gain Tax.
• The entities qualifying for the program will enjoy further benefits such as tax redemption on the earned profits.

Loan Details

The Stand Up India Scheme facilitates bank loans to eligible applicants through scheduled commercial banks. Key features of the loan include:

• Loan Amount : Between ₹10 lakh and ₹1 crore.
• Loan Type : Composite loan (including term loan and working capital) covering up to 85% of the project cost.
• Collateral : The scheme encourages collateral-free loans, supported by a credit guarantee from the National Credit Guarantee Trustee Company (NCGTC).
• Repayment Period : Up to 7 years, with a moratorium period of up to 18 months.
• Interest Rate : As per the bank’s policy, typically the lowest applicable rate for the category, ensuring affordability.

Implementation Process

The Stand Up India Scheme is implemented through all branches of scheduled commercial banks across India. The process involves:

1. Application :
   • Applicants can apply through the Stand Up India Portal (www.standupmitra.in) or directly at a bank branch.
   • The portal provides handholding support, including guidance on business plans, documentation, and compliance.
2. Handholding Support :
   • SIDBI (Small Industries Development Bank of India) and NABARD (National Bank for Agriculture and Rural Development) act as facilitators, connecting applicants with banks and providing training and support.
   • District Industries Centres (DICs), Dalit Indian Chamber of Commerce and Industry (DICCI), and other organizations offer mentorship and guidance.
3. Loan Sanctioning :
   • Banks evaluate the application based on the business plan, applicant’s creditworthiness, and project viability.
   • The scheme emphasizes quick processing to ensure timely access to funds.
4. Post-Sanction Support :
   • Borrowers receive assistance in marketing, technology adoption, and business management to ensure the success of their ventures.

Conclusion

The Stand Up India Scheme is a powerful initiative to foster entrepreneurship among women and SC/ST communities, enabling them to contribute to India’s economic growth. By providing access to finance, handholding support, and a robust ecosystem, the scheme empowers aspiring entrepreneurs to turn their ideas into reality. If you’re an eligible individual with a vision to start your own business, the Stand Up India Scheme could be your stepping stone to success.